Volvo Car Group Receives Approval For Manufacturing In
China

LONDON – Aug 26, 2013: Chinese government authorities have
approved Volvo Car Group's (Volvo Cars) establishment of manufacturing
plants in Daqing and Zhangjiakou. As a result, Volvo Cars' full Chinese
industrial footprint, including Chengdu, has been approved.

The assembly plant in Daqing is under construction and the first
pre-series cars will be built late 2013 for training purposes. The plant is
forecast to be fully operational in 2014.

The engine plant in Zhangjiakou will become operational during the
autumn of this year and will deliver engines to Volvo Cars' manufacturing
plant in Chengdu, where serial production will start in the fourth quarter
of 2013. Zhangjiakou will also supply the assembly plant in Daqing.

The plants in Daqing and Zhangjiakou will be operated in the form of two
joint venture companies, in which Volvo Cars initially will hold 30 per
cent. The remaining part will be held by companies within Geely Holding
Group.

The Chengdu plant will be operated under an extension of an already
existing production license held by a Geely Holding company. The
manufacturing license for Chengdu was granted in June.

The plants in China will be operated in full accordance with Volvo Cars
manufacturing standards and procedures, equal to those of the company's
European plants.